Vietnam has missed out on USD 23.6 billion in exports to halal markets, according to experts who spoke at a recent seminar on standards needed for halal certification.

The event was organized by the HCM City Investment and Trade Promotion Center (ITPC) on September 16.

Director of ITPC Pham Thiet Hoa said the halal certification plays a major role in protecting consumer interests because it not only meets religious requirements but also complies with strict food safety and hygiene regulations. Muslims only use halal-certified products.

Vietnam has missed out on USD 23.6 billion in exports to halal markets. Photo: thoibaonganhang.vn

According to recent statistics, there are nearly 1.8 billion Muslims worldwide, accounting for about 23 percent of the world’s population. Most of them live in Malaysia, Indonesia, Brunei, Saudi Arabia, United Arab Emirates (UAE) and other countries in the Middle East.

Since only a few of these countries produce halal products, market potential is huge.

Entering these markets would improve Vietnam’s ability to sell products and open up greater export opportunities for local firms.

According to the sales director of the Halal Center in Vietnam, Ramlan Osman, the halal-related industry includes halal-certified processed food and beverages, as well as raw materials for processing, cosmetics, pharmaceuticals, personal care and health products, logistics and restaurant services.

Of the 1.8 billion Muslims worldwide, one billion are from Asia, while 230 million of them live in Southeast Asia. The four Asian countries with developing Muslim markets include Indonesia, Pakistan, India and Bangladesh, with 700 million consumers.

As the total Muslim population is expected to increase to 27 percent by 2050, consumption of halal products would be USD 15 trillion.

According to Ramlan Osan, Vietnam has great potential to develop a halal economy.

With the nation’s GDP growth increasing on average of 6 to 7 percent per year, Vietnam has a strong base for halal industry development.

Vietnam has an advantage in raw materials for halal production such as coffee, rice, seafood, spices, beans and vegetables, among other items.

Vietnam is also recognized as an attractive tourist destination, hence the growth in restaurants and hotels satisfying Halal standards.

The most recent statistics show that supply of potential halal products could be worth USD 34.1 billion, but the figure that Vietnam actually reached was USD 10.5 billion. That means the country has missed out on USD 23.6 billion in exports to the halal market.